Fitch Ratings: Rising prices may weaken US consumer spending before the holiday season.

According to the latest "U.S. Consumer Health Monitor Report" released by Fitch Ratings, consumer spending in the first half of 2025 in the United States has slowed significantly, falling from the strong growth at the end of 2024. Increased uncertainty in trade policies and stock market volatility have weakened consumer sentiment and confidence, leading to a decrease in household spending. The cooling labor market further limits household income. "As costs related to tariffs are passed on to goods, inflationary pressures are rising, and the economy may turn towards stagflation later this year," said Olu Sonola, Director of U.S. Economic Research. "It is expected that price increases will first impact goods categories, possibly weakening consumer spending before the holiday season."